Are Filipinos Ditching Cash for Credit Cards in 2025?

Something big is happening with money in the Philippines, and you can see it everywhere. From coffee shops that expect you to tap your card, to your Gen Z cousin who hasn't used cash in months.

In 2025, more Filipinos are switching from cash to credit cards. This shift is happening because of three big reasons: government policies pushing digital payments, habits we picked up during the pandemic, and a whole new generation that thinks about money differently.

The numbers are impressive: digital payments now make up 59% of all shopping transactions, way past the Bangko Sentral ng Pilipinas' (BSP) goal of 50%. Credit card ownership has jumped to just over 15% of Filipino adults. That's still low compared to other countries, but it's growing fast, especially among younger people.

But this isn't just about numbers. It's about how Filipinos are changing the way they think about money, how they spend it, and who gets to join the financial system.

The Government's Big Push for Digital Money

The BSP (our central bank) isn't just watching this happen. They're making it happen.

In 2025, the BSP introduced stricter rules for large cash withdrawals of ₱500,000 or more. You now need extra paperwork for these large amounts. This was done to stop money laundering, but it's also pushing Filipinos to use digital payments instead. Along with the National QR Code and digital ID systems, it's now easier and safer than ever to pay digitally.

Here's the critical part: the BSP isn't trying to eliminate cash completely. Instead, they want a "cash-lite" Philippines where digital and cash payments coexist. They know millions of Filipinos still need cash for everyday expenses.

And it's working. The BSP aimed to have 70% of Filipino adults in the banking system by 2025. They actually hit that goal early. In 2023, 71% of households had either a bank account or a digital wallet.

How the Pandemic Changed Everything

If the BSP set things up, the pandemic made it happen fast.

Lockdowns didn't just change how we shopped for a while. They changed how we think about money forever. By 2025, 80 million Filipinos were using digital wallets like GCash and Maya. When we couldn't go to banks or markets during lockdown, these apps became our lifeline. But they didn't stop at just sending money. They grew into complete financial tools.

GCredit and Maya Credit gave people virtual credit lines, making it easier for first-time users to borrow money. Millions of Filipinos who could never get a traditional credit card suddenly had access to credit. For people without bank accounts, these tools weren't just convenient. They opened doors to financial services they never had before.

The pandemic also changed how we think about safety. Digital payments let you see transactions instantly and dispute fraud—something you can't do with cash once it leaves your hands.

Three years after the worst of the pandemic, these new habits haven't disappeared. They've become normal.

Gen Z: The Credit Card Generation

If there's one group driving the credit card boom, it's Gen Z.

In 2024, Gen Z's trust in credit cards shot up dramatically. Their Credit Perception Index (CPI) score jumped to 83, a huge 19-point increase from the year before. This shows they see credit cards as tools to improve their finances, not as debt traps. Gen Z now makes up almost one-third of all first-time credit card users, up from just 15% in 2019.

But they're not just getting cards. They're using them smarter.

"It would be a waste to miss out on the points and cashback," one Gen Z user explained on Reddit. This shows how they think. Credit cards aren't just for emergencies. They're tools to get the most from every purchase.

Growing up with smartphones shows. Gen Z is way more likely than older generations to use credit cards for everyday purchases, track their spending on apps, and maximize rewards programs their parents might ignore. For them, credit isn't scary. It's smart money management.

Millennials feel the same way. According to TransUnion research, 52% of Millennials plan to apply for credit or refinance in the next year, showing this trend spans generations.

The Reality Check: Not Everyone Can Join

But here's where it gets tricky.

Weihan Sun from TransUnion points out something important: "57% of people who want credit cards give up on applying because they're afraid of rejection or think it costs too much."

Even though 58% of Gen Z and 52% of Millennials want credit cards, there are still big obstacles. Many Filipinos still think credit cards equal debt and overspending. These fears come from hearing stories about people who misused their cards.

There's also a huge gap between regions. In Metro Manila, 21.9% of people have credit cards. But in areas like BARMM and SOCCSKSARGEN, the numbers are much lower. This shows bigger problems: not everyone has equal access to banks, internet, and financial education.

Here's another warning sign: fewer people are checking their credit scores regularly (down from 72% to 68%). This means as more Filipinos get credit cards, fewer understand how to use them responsibly.

How Banks Are Responding

Credit card companies are rushing to keep up.

Banks are now making it easier to apply through your phone, using AI to approve people who might not have traditional jobs, and adding buy-now-pay-later options for younger users. Some are even teaming up with GCash and Maya to create new products that mix debit and credit features.

Their goal is clear: make it super easy to apply, get approved fast, and offer rewards that match how Filipinos actually spend money on groceries, restaurants, transportation, and online shopping.

What This Means for You

Whether you already have a credit card or you're thinking about getting one, this shift affects you:

If you're thinking about your first card: Right now might be the easiest time ever to get approved in the Philippines, especially if you're young and comfortable with technology. But remember, easier access means you need to be more responsible. Make sure you understand how interest works and can pay your full balance every month.

If you already have cards: Banks are competing hard for customers, which means better rewards and perks for you. Now's a good time to compare what you have against new offers. Don't be afraid to switch if you find something better.

If you're avoiding credit cards altogether: Think about what you might be missing. When used correctly, credit cards offer fraud protection, rewards, and help build your credit score. These are things cash and debit cards can't do. But if you know you'll overspend, staying away is the smartest choice.

Why This Matters Beyond Credit Cards

This isn't just about credit cards. It's about who gets to participate in our financial system.

When the BSP talks about getting 70% of adults into the banking system, they're talking about millions of Filipinos who've been left out. Digital payments and easier credit access are giving more people financial opportunities that physical banks never could.

But with opportunity comes responsibility. Experts warn that issuing credit cards without teaching people how to use them properly is dangerous. The real challenge isn't just getting more Filipinos credit cards. It's about making sure they know how to use them without getting into debt.

What's Coming Next

The shift from cash to credit in 2025 is more than just a new way to pay. It's changing how Filipinos think about and use money.

Pushed by government policies, boosted by pandemic habits, and driven by a generation that sees credit as an opportunity rather than a risk, this trend isn't slowing down.

But the change isn't happening equally everywhere. Some regions are still behind, barriers still exist, and people can still end up in debt if they're not careful.

The question isn't if this shift will continue. It will. The real question is: will financial education keep up with financial access? Will more Filipinos with credit cards mean more Filipinos with financial security, or just more Filipinos with debt?

One thing is sure: the Philippines in 2025 looks completely different from five years ago. And if things keep going this way, the next five years will bring even bigger changes.

Your wallet (whether it's physical or digital) will never be the same.

The Numbers at a Glance

Sources

• Bangko Sentral ng Pilipinas. (2025). "BSP implements stricter rules on large cash transactions."
• Inquiro Research. (2025). "Credit Card Usage in the Philippines."
• BitPinas. (2025). "BSP Gov. Diokno Envisions a PH Coinless Society by 2025."
• Philippine Star. (2025). "Pandemic Accelerated Adoption of Digital Services."
• The Freeman. (2024). "Gen Zs Drive Credit Card Market Growth."
• Reuters. (2025). "Philippines Central Bank Tightens Rules on Large Cash Withdrawals."
• Rolling Stone Philippines. (2025). "Cash-Lite, Not Cashless: PH Central Bank's Goal."
• BSP. (2024). "2023 Report on E-Payments Measurement."
• CoinGeek. (2024). "Philippines Digital Payments Surpass 2024 Targets."
• TransUnion Philippines. (2024). "New-to-Card Consumers Key to Driving Inclusive Credit Growth."
• Reddit r/PHCreditCards. (2024). "Fellow Gen Zs, Where Do You Usually Use Your Credit Cards?"
• TransUnion Philippines. (2024). "Cautious Optimism Prevails as Filipino Consumers Navigate Economic Pressures."
• Nylon Manila. (2024). "Accelerating Credit Growth for Gen Z Filipinos."
• Business World. (2025). "First-Time Card Users to Drive Growth in PHL Credit Market."
• TransUnion Philippines. (2025). "TransUnion's 2025 Credit Perception Index Reveals Filipinos' Rising Trust in Credit."